Roshel Inc., a Canadian manufacturer of armoured vehicles, has announced its intention to acquire the Stellantis assembly facility located in Brampton, Ontario, as disclosed by the automaker on Monday.
The company will take over the shut-down plant along with its equipment from Stellantis, although the financial details of the transaction have not been revealed.
Both companies indicated they are looking into potential partnerships in vehicle technology and related defence services in the future.
According to a statement from Stellantis, this development will “establish a pathway for the Brampton Assembly Plant to resume productive industrial operations.”
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Stellantis signs MOU with Canadian armoured vehicle maker on potential sale of Brampton, Ont., plant
This announcement follows Unifor’s meeting with Stellantis on Friday, where they inquired about rumors regarding the sale of the plant, to which Stellantis refrained from confirming or denying.
‘Stellantis has betrayed our members’: union president
Lana Payne, the national president of Unifor, stated on Monday that the sale represents an “unacceptable result” for the union and its members, labeling it as the “worst-case scenario.” She highlighted that the closure and sale of the plant diminish Canada’s automotive production capacity by 10 percent.
“The sale of an automotive assembly facility and the subsequent loss of production capacity is disastrous for the Canadian industry, for our nation, and primarily for the workers who have dedicated so much to this company over many years,” Payne expressed during a news conference.
“Once that capacity is lost, it is often irretrievable, bringing with it the loss of thousands of good union jobs and many more throughout the supply chain,” she added.
Unifor national president Lana Payne stated that the sale is an ‘unacceptable outcome’ for the union and its members, calling it the ‘worst-case scenario.’ (Evan Mitsui/CBC)
“Stellantis has betrayed our members through a secretive deal to divest the plant and abandon its commitments to these workers. Allowing this sale to proceed is a significant failure of our national automotive strategy and undermines the federal government’s promise to safeguard auto workers from this U.S. trade conflict,” Payne asserted.
She emphasized that the union had urged the automaker to maintain the plant in a “ready condition for future operations” despite U.S. tariffs.
“Stellantis has neglected its responsibilities to Canadian workers in Brampton. Modifying trucks for military use is not equivalent to manufacturing vehicles from scratch,” she remarked.
The union plans to convene with company and government representatives later this week, she noted.
Automaker committed to ‘fair resolution’ for workers
Stellantis acknowledged its responsibilities to employees under their collective bargaining agreement and expressed a willingness to work with Unifor for a satisfactory resolution.
“The employees in Brampton have made significant contributions to Stellantis, and we take our obligations to them and their families very seriously. After three years of paid layoff, we are committed to collaborating with Unifor on a fair resolution,” stated Stellantis CEO Antonio Filosa in the release.
A few Unifor members gathered outside the Brampton assembly facility on Monday to support the union following the announcement of the sale. (Dana Roberts/CBC)
Filosa added that this transition opens “new avenues for Stellantis within the defence sector.”
Roman Shimonov, founder and CEO of Roshel, mentioned that the company aims to establish a new centre of excellence for advanced manufacturing “which will enable Canadian companies to better cater to domestic clients and export to allied markets.”
“In alignment with Canada’s defence industrial strategy, it will bolster our sovereign industrial capabilities, promote local economic growth, and provide much-needed manufacturing space and jobs in the Toronto region,” Shimonov stated in the release.
In a Monday interview on CBC’s Hanomansing Live, Shimonov noted that Roshel plans to lease a portion of the facility back to Stellantis, but emphasized that Roshel does not take on any responsibilities from Stellantis.
He expressed that utilizing as much of the plant as possible is in Roshel’s best interest, adding that the company hopes to attract a significant European automaker, which he chose not to name. Roshel has received a letter of intent from this automaker, and the plant will not solely focus on manufacturing defence vehicles, according to him.
“Our objective is to employ thousands, and we will prioritize hiring local residents from Brampton,” he stated.
In September, Stellantis had signed a memorandum of understanding with Roshel regarding the potential sale of the facility.
Over 2,000 workers laid off when plant idled in 2023
When the Brampton facility ceased operations in 2023, over 2,000 workers were laid off.
In August, the union reported that it had been informed Stellantis was considering shutting down and selling the plant. The facility was initially slated for retooling for Jeep production, with plans commencing early in 2024, but the company suspended this project in early 2025.
Mayor Patrick Brown says retaliatory tariffs need to be back on the table after automaker Stellantis announced plans to move Jeep production slated for the plant in Brampton, Ont., to south of the border.
Subsequently, the company announced it would shift the production of the Jeep Compass to the United States, which the union claimed violated their existing collective agreement, leaving the plant inactive indefinitely.
The announcement regarding the sale occurs amidst stalled contract negotiations between Stellantis and the union that represents over 9,000 of its Canadian workers.
The two parties have been in conflict over the future of the Brampton location along with job security issues. Last month, Stellantis workers in Canada voted overwhelmingly, with 97.3 percent in favor of authorizing a strike if necessary.
At that time, Unifor stated that a strike would be a “last resort” and expressed hope to achieve an agreement with the automaker.
Federal ministers call for return to bargaining talks
On Monday, Industry Minister Mélanie Joly declared on social media that the decision to divest the plant does not “negate the commitment” Stellantis owes its employees.
“We remain dedicated to finding solutions for the more than 2,000 workers impacted and their families. They deserve transparency, respect, and, most importantly, a secure future,” Joly stated.
Industry Minister Mélanie Joly, seen here during question time on Parliament Hill in Ottawa, stated that the decision to sell the plant does not ‘erase the commitment’ that Stellantis made to its workers. (Adrian Wyld/The Canadian Press)
Joly urged all parties to resume negotiations. She mentioned that she has contacted representatives from Stellantis, Unifor, the Ontario government, and the Brampton facility to arrange a meeting later this week.
“I expect them to approach the discussions with a singular focus: safeguarding quality jobs in Brampton,” Joly stated.
“For the auto workers in Brampton, abandoning the cause is not an option. We are resolute in our mission to defend and expand Canada’s automotive sector in Brampton and nationwide.”
‘Families deserve answers,’ minister says
International Trade Minister Maninder Sidhu, who also represents Brampton East, supported Joly’s call for negotiations to recommence in a post on X.
“More than 2,000 workers and their families from the Brampton assembly facility deserve clarity about their future,” Sidhu stated.
“This plant has been an integral part of our city’s automotive sector for generations. Stellantis made commitments to these workers, and it must uphold them.
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‘Don’t close, don’t sell’: Union implores Stellantis to keep Brampton plant as automaker signals sale
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Unifor Stellantis workers in Ontario vote 97% in favour of strike mandate with talks still stalled
Sidhu affirmed that the federal government will continue to advocate for the plant to yield quality jobs in Brampton.
‘We’re angry today in Brampton,’ mayor says
Patrick Brown, the Mayor of Brampton, expressed in an interview that Stellantis has a legal duty to Canadian taxpayers regarding the production incentives received for manufacturing in the city and a moral responsibility towards the members of Unifor Local 1285 who dedicated years of hard work at the facility.
“We are upset today in Brampton,” Brown remarked on Monday. “Stellantis has an obligation they cannot ignore.”
Brown pointed out that the announcement lacked specific details about what will be produced at the facility. He mentioned that the land where the plant stands is designated for automotive manufacturing.
“If we permit Stellantis to abandon Brampton without repercussions, we should not be surprised if this pattern repeats across the nation. This location is pivotal for Canadian vehicle production. I fear that if we allow Stellantis to escape without consequences, we are essentially accepting the departure of automotive production from Canada entirely,” Brown stated.
He urged Roshel to collaborate closely with the local union to identify employment and training opportunities for the displaced Brampton autoworkers.
The completion of the transaction is anticipated by the end of this year, contingent on specific conditions, including regulatory and governmental approvals.